Trading Stocks Vs. Trading Currency

Trading stocks and currency are very different. Some people prefer to trade on the stock market, and others prefer to trade on the Forex Market. Which one is better? Well, consider these following points, and then make the decision for yourself:


The amount of leverage allowed on the two markets is quite different. When trading on the stock market, you can trade with leverage, but it will be very small, such as 2:1, and you have to qualify for it. When trading on the Forex Market, all you need to trade with leverage is to be able to open an account. If you can open a bank account, you can open a Forex account, so it is much easier. Also, you can leverage much higher in the Forex Market. In the US, you can’t leverage higher than 50:1, but in other places throughout the world, you can leverage 100:1 or more.

What You Need To Consider

Doing stock market analysis is important, and requires a lot of research about the companies you wish to invest in, but once you make a decision, you only need to worry about whether the company is going to continue along the path they are on, and hope they become more valuable. Forex analysis is also important, and can be more complicated. When trading currency, you have to consider the GDP and the economy of the country whose currency you are considering. You have to see what the political climate is, and if there are other circumstances on the horizon that might affect the currency. The Forex market can change much faster than the stock market.

Amount of Freedom

There are Forex brokers and stock brokers. You can consult a Stock EA and a Forex EA. You can use different stock programs and Forex programs, such as Stock Trade Copier and Forex Trade Copier. You can look at stock market trends and Forex signals. Even with all of this knowledge, you are still not guaranteed a win or a loss. Both of these trading options leave the trades up to the trader, but this is where the freedom aspects change. The stock market is not open as often as the Forex Markets. There is a lot more regulation in the stock market than in the Forex Market. The Forex Market is more volatile, but the stock market has more rules. Ultimately, the choice is yours.